The impeachment process was initiated after he failed to resign from the presidency by Monday afternoon, the deadline set by ruling ZANU-PF party.
The matter came to this end after Zimbabwe's military seized power early on Wednesday and since then 93-year-old Mugabe had been delaying his resignation.
Wild celebrations broke out at a joint sitting of parliament when Speaker Jacob Mudenda announced Mugabe's resignation and suspended the impeachment procedure, reported The Telegraph.
Speaker read out Robert Mugabe's resignation letter to the parliament.
"I Robert Gabriel Mugabe in terms of section 96 of the constitution of Zimbabwe hereby formally tender my resignation... with immediate effect," said speaker Mudenda, reading the letter.
The Telegraph quoted the letter as saying that Mugabe was tendering his resignation to "allow a smooth transfer of power". The letter was read out in a cheering, dancing Parliament.
The ruling party has chosen Emmerson Mnangagwa to replace Mugabe, who is expected to take over as president.
Mnangagwa, a veteran of the liberation war and for decades Mugabe's right-hand man, fled into exile earlier this month after being ousted from his position in government and Zanu-PF by a faction allied to the president's wife.
The impeachment motion said Mugabe is a "source of instability", has shown disrespect for the rule of law, and is to blame for an unprecedented economic tailspin over the past 15 years, and allowed his wife, Grace Mugabe, to "usurp constitutional power".(ANI)